UPI Users Can Now ‘Pay Later’ Even Without Account Funds

The adoption of UPI payments is surging, and a new service offers convenience to users.

Even when your account balance is zero, you can continue to make payments via your UPI app, thanks to a recent approval from the Reserve Bank of India.

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RBI Enables ‘Pay Later’ Feature for UPI Transactions

The Reserve Bank of India (RBI) has unlocked a new dimension in UPI transactions by allowing transfers from pre-sanctioned credit lines, providing a seamless experience for users.

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Using Credit Lines for UPI Payments: A Game Changer

Previously, UPI users could link their savings accounts, overdraft accounts, prepaid wallets, and credit cards to the UPI system.

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Now, they can harness the power of their pre-approved credit lines, offering greater flexibility and financial freedom.

How Does the UPI ‘Pay Later’ Service Work?

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Let’s delve into the mechanics of this new service. Banks seek your approval for a credit line, and once approved, you can spend the pre-approved amount through your UPI app.

You have the option to repay your dues by the due date, with some banks offering interest-free credit periods.


HDFC Bank and ICICI Bank Lead the Way in ‘Pay Later’ Services

Leading banks like HDFC Bank and ICICI Bank are among the pioneers offering the ‘Pay Later’ feature.


HDFC Bank charges a one-time processing fee of Rs 149, and after this, they connect your debit card to a ‘Pay Later’ account, which can be seamlessly integrated with your UPI app.

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